USDX (USD Index)

The upward movement of the U.S dollar index loses momentum as the index closed lower yesterday. Today, there is bearish pressure testing yesterday low. If the index continues moving lower then 89.60 – 90.00 will become the support area to watch.

A bounce from the support level could lead to a “W” pattern reversal. However, if the index printed lower low below 89.18 then the bearish trend is set to continue.

EUR/USD

EUR/USD managed to bounce from the 1.2070 support level yesterday. The pair made a bullish close and will attempt to extend its bullish movement toward 1.2200. We will wait for a breakout from the 1.2000 – 1.2200 area to determine EUR/USD next direction.

today critical levels to watch:

Support: 1.2070, 1.2000

Resistance: 1.2200, 1.2300, 1.2500

GBP/USD

GBP/USD continues to stick near the 1.3600 level. The short-medium-term trend is bullish but no clue yet whether the pair will continue toward 1.3835 and 1.4000 immediately or after a bearish correction. Traders who have long positions could continue to hold the positions with a stop below 1.3450.

Today Critical level to watch:

Support: 1.3600, 1.3450, 1.3330, 1.3300

Resistance: 1.3835, 1.4000

USD/JPY

USD/JPY traded sideways near the top of the bearish channel. Traders will continue waiting for a further reaction from the top of the channel. As long as there is no breakout above the channel then the pair trend will continue bearish. Short positions could be considered with a stop above the channel level.

Today critical levels to watch:

Support: 101.50, 101.19

Resistance: 104.00, 105.00, 106.00, 106.70

AUD/USD

AUD/USD currently trading inside the bullish channel. The pair attempting to build more bullish pressure to continue upward to test the 0.7800 resistance level. Traders who want to enter long positions could use the bottom of the channel or 0.7500 – 0.7550 support area for the safer option.

Today critical levels to watch:

Support: 0.7700, 0.7640

Resistance: 0.7750, 0.7800